Corporate

Company Snapshot

Property:Spanish Mountain Gold Project 
Ownership:100% Ownership 
Symbol:SPA.TSX.V 
Location:British Columbia, Canada 
Share Structure:Shares Issued & Outstanding:
Fully Diluted:
218,114,373
237,556,040
Market Capital (as of April 6, 2017):~$45 million 
Management:CEO and Interim CFO
VP of Geology
Larry Yau
Judy Stoeterau
Board of Directors:Ian Watson
Don Coxe
Dale Corman
Christopher Lattanzi
James Clare
Jim Rogers

 

April 2017 Preliminary Economic Assessment Highlights *
Processing Rate 20,000 tonnes per day
Mine Life 24 years
Total gold production 2.2 million oz
Average Annual gold production 157,000 oz (years 1 - 5)
142,000 oz (years 1 - 10)
92,000 oz (life of mine)
Strip Ratio1.4 to 1 (life of mine)
Operating CostC$ 9.94 / tonne milled
Cash costs ($ per ounce)US$ 469 (years 1 - 5)
US$ 555 (years 1 - 10)
US$ 595 (life of mine)
Initial Capex (including $51 million contingencies)C$ 507 million
Sustaining CapexC$ 194 million
Pre-/ Post-tax NPV (5% discount)C$ 597 million/ C $482 million
Pre-/ Post-tax IRR21% / 19%
Pre-/ Post tax Payback3.67 years / 3.75 years

PROJECT RETURNS @ DIFFFERENT GOLD PRICE

Project Economics Sensitivity (Pre-tax) (Base Case)  
   $1,150$1,200$1,250$1,300$1,350
 NPV@5%C$mm$422$510$597$685$772
 Internal Rate of Return (IRR) 17%19%21%23%25%
 Payback Period (from start of production)Years4.34.03.7 3.43.2
 LOM Cumulative Free Cashflows including CapexC$mm$884$1,029$1,174$1,319$1,464

 

Project Economics Sensitivity (Post-tax) (Base Case)  
   $1,150$1,200$1,250$1,300$1,350
 NPV@5%C$mm$352$418$482$539$595
 Internal Rate of Return (IRR) 16%18%19%21%23%
 Payback Period (from start of production)Years4.34.03.7 3.53.3
 LOM Cumulative Free Cashflows including CapexC$mm$754$860$963$1,049$1,138

INITIAL CAPITAL EXPENDITURES

Direct CostsInitial Capital Cost (C$ Million)
Overall Site16.6
Open Pit Mining97.3
Processing Plant (including Ore Handling)140.0
Tailing Management Facility & Water Management56.8
Environmental12.0
On-Site Infrastructure28.6
Off-Site Infrastructure14.3
Sub-Total365.6
Indirect Costs 
Project Indirects84.6
Owner’s Costs5.8
Contingencies51.1
Sub-Total141.5
Total Initial Capital Cost507.1

OPERATING COSTS

AreaUnit Cost (C$)
Mining ($/t mined)$1.96
Mining ($/t milled)$4.79
Processing ($/t milled)$4.01
Tailings ($/t milled)$0.05
G&A ($/t milled)$1.09
Total ($/t milled)$9.94

* See Cautionary Note Number 1
** See Cautionary Note Number 2

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